Corporate Insiders Pocket $1 Billion in Rush for Coronavirus Vaccine

NY TIMES

Well-timed stock bets have generated big profits for senior executives and board members at companies developing vaccines and treatments.

In some cases, company insiders are profiting from regularly scheduled compensation or automatic stock trades. But in other situations, senior officials appear to be pouncing on opportunities to cash out while their stock prices are sky high. And some companies have awarded stock options to executives shortly before market-moving announcements about their vaccine progress.

The sudden windfalls highlight the powerful financial incentives for company officials to generate positive headlines in the race for coronavirus vaccines and treatments, even if the drugs might never pan out.

Some companies are attracting government scrutiny for potentially using their associations with Operation Warp Speed as marketing ploys. read more »

Under Armour executives receive Wells notice from SEC

REUTERS

Under Armour Inc disclosed on Monday that its top executives had received a Wells notice from the U.S. Securities and Exchange Commission related to an investigation about the sportswear maker’s accounting practices.

Last year, the company said it was cooperating with federal investigators in connection with a probe about whether it shifted sales from quarter to quarter to meet objectives. read more »

SEC Charges Trustify Inc. and Founder in $18.5 Million Offering Fraud

SEC

The Securities and Exchange Commission today charged Trustify Inc., an online marketplace purportedly designed to connect customers to a network of private investigators, and its founder and CEO Daniel Boice with fraudulently offering and selling over $18.5 million of securities to more than 90 corporate and individual investors.

The SEC’s complaint, filed in federal court in the Eastern District of Virginia, alleges that between 2015 and 2018, Trustify and Boice falsely held Trustify out as a successful startup with lucrative corporate clients, thousands of investigators in its network, and growing revenues.  According to the complaint, however, Trustify’s number of investigators and revenue were far lower than represented and the company was unable to pay its employees and vendors and effectively ceased operations. read more »